Statement Of Sen. Alexander - Internet Tax Moratorium Vote

Posted on April 29, 2004

This proves the Senate can come to a good result on a complex issue that affects millions of Americans and every state and local government. It balances well two important principles: federalism and free markets. It temporarily bans state and local taxes on Internet access while doing minimal harm to state and local governments. The bill is a huge improvement over that passed by the House because:
  • It is temporary, not permanent.
  • It allows states already collecting taxes on Internet access to continue to do so for two or four years.
  • Most importantly, it makes clear that states and cities can continue to collect taxes on telephone services, even if telephone calls are made over the Internet.